Corporation Tax Act 2010 section 635

Application of Chapter

Section 635 sets out when this Chapter applies, specifying the conditions that must be met for a company that accepted deposits and is being wound up by a UK court.

• The Chapter applies to a company that is being, or has been, wound up by a court in the United Kingdom, provided three conditions (A, B and C) are all satisfied.
• Condition A requires that the company was lawfully carrying on a deposit-taking business at some point during a specific 12-month window — this window ends on the earlier of the date winding up proceedings started or the date the company permanently ceased its deposit-taking trade.
• Condition B requires that the company has permanently ceased to carry on the trade that included the business of accepting deposits (referred to as the "deposit-taking trade").
• Condition C requires that the company is insolvent, and that it was either already insolvent when winding up proceedings began, or became insolvent within 12 months after those proceedings started.